Cola Wars Case Study Question: Why is the soft drink industry so profitable? Historically‚ the soft drink industry has been extremely profitable. Long time industry leaders Coca-Cola and Pepsi-Cola largely drive the profits in the industry‚ relying on Porter’s five forces model to explain the attractiveness of the soft drink market. These forces allowed Coke and Pepsi to maintain large growth until 1999‚ and also explain the challenges that each company is currently facing. The relative duopoly
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In favour of Pepsi: 1st advert: Coke vs Pepsi Two delivery drivers for Pepsi and coke are sat at a diner and ask for a Pepsi and coke‚ they are both working late to make some extra money and have a joke and laugh together after liking a song that was playing‚ they offer each other their drinks but when the coca cola driver drinks the Pepsi he has a drink but doesn’t give it back‚ the camera shows the outside of the diner and shows windows smashing‚ they’re having a fight or disagreement. I didn’t
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5. How attractive to PepsiCo is the proposal to buy 30% of Deltex for 1.1B pesos (US$360M)? Based on the information in the case‚ Pepsi could invest US$360 million in exchange for 30% equity of Deltex. So we have to calculate the value of 30% equity of Deltex. First‚ we calculated the discount factor by using average unlevered beta of US independent bottlers‚ US 10 year Treasury bond as risk free rate and assuming market risk premium 10%. We came up with 9.83% of WACC. Next‚ we calculated Deltex
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The Coca-Cola Company Profile The Coca-Cola Company is the world’s leading beverage company. With a brand value of 78.5 billion dollars‚ Coca-cola is the world’s number one brand according to Interbrand. Based in Atlanta‚ Georgia‚ the company distributes carbonated soft drinks‚ light and diet beverages‚ waters‚ juices and juice drinks‚ teas‚ coffees‚ energy and sports drinks in over 200 countries. Even though Coco-Cola’s beverage portfolio caters primarily to Carbonated Soft Drinks‚ the company
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Strengths The Coca-Cola is the world’s largest beverage company‚ offering consumers almost 500 still and sparkling brands. Coke has the world’s largest beverage distribution network; consuming in more than 200 countries enjoys the Coke’s beverages at an average of nearly 1.6 billion servings a day. In 2011‚ Coca-cola was declared the world’s most valuable brand according to Interbrand’s best global brand. Cola-Cola gets competitive advantage through the well-known global trade
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Introduction to the Pepsi brand The following essay will offer information on the world famous brand of Pepsi-Cola and give insight on the history of the brand‚ why it has become so successful as well as provide information and statistics on the brand. Pepsi as a brand has been highly successful in the food and beverage industry‚ this essay will give insight into how the brand was able to keep up with the social and economic conditions of its consumers as well as discuss why Pepsi is a healthy brand
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the business Coca Cola SWOT ANALYSIS The Coca-Cola Company (Coca-Cola) is a leading manufacturer‚ distributor and marketer of Non-alcoholic beverage concentrates and syrups‚ in the world. Coca-Cola has a strong brandname and brand portfolio. Business-Week and Interbrand‚ a branding consultancy‚ recognizeCoca-Cola as one of the leading brands in their top 100 global brands ranking in 2006. TheBusiness Week-Interbred valued Coca-Cola at $67‚000 million in 2006. Coca-Cola ranks wellahead of its
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Read the Edward Jones case carefully. Prior to class‚ consider the following discussion questions in your study teams: 1. What have been the factors leading to the success of Edward Jones? 2. Will those factors continue to bring Edward Jones success? Has the environment changed sufficiently to warrant a strategic change? 3. As a consultant‚ what advice would you give to Weddle to allow Edward Jones to sustain its success? Read the Edward Jones case carefully. Prior to class‚ consider
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Lesson of New Coke: The Value of Focus Groups for Predicting the Effects of Social Influence By Robert M. Schindler n April 1985‚ the management of Coca-Cola Co. announced its decision to change the flavor of the cotnpany ’s flagship brand. The events that followed from this decision‚ as well as the faetors which led up to it‚ have been reviewed‚ discussed‚ and extensively analyzed in the popular press‚ the trade press‚ and in marketing textbooks. Two books and at least two marketing cases have been
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p18)‚ during the period 1980-2004‚ we can notice that concentrate producer – Coca-Cola company – earned between 21% and 37‚1% whereas its largest bottler – Coca Cola Enterprise – only earned between 4‚3% and 8‚6%. Rivalry : We could characterize the soft drink market as an oligopoly‚ or even a duopoly between Coke and Pepsi‚ resulting in positive economic profits. There was tough competition between Coke and Pepsi for market share‚ and this occasionally hampered profitability – especially for the
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